April 29, 2015
Massive Trade Deal Could Come Down to Two Things: Rice & Cars
Japanese Prime Minister Shinzo Abe will get the royal treatment this week during his U.S. But, reports Politico, behind the scenes, White House officials are working feverishly to unsnag a trade deal with Japan and 10 other Asia-Pacific countries that would be the largest such agreement in history. The two major hold-ups: rice and cars. Washington wants Japan to raise the cap on the amount of rice the U.S. can sell to the country without tariffs, which can top 778 percent. Tokyo wants the U.S., long protective of its auto industry, to drop tariffs on cars, trucks, and auto parts. Rice and cars have always been a sticking point in U.S-Japanese trade relations: Japan is very protective of its home-grown rice industry, which is ingrained in the country’s culture, while the U.S. doesn’t want Toyota and Honda to undercut the iconic Ford and Chevy pickup truck industry. A deal between the two countries could be hastened by the House and Senate markups last week of so-called fast-track trade legislation that would expedite Congress’ approval of the TPP and another huge pact Washington is negotiating with the European Union. Click here to contact your legislators and tell them why international nameplate dealers support fast track legislation. For more on the pivotal issues in a pending Pacific trade agreement, click here.
Rosekind to Discuss Safety Issues with Auto Execs in Detroit
The top U.S. auto safety official is traveling to Detroit Wednesday for a series of meetings with automotive CEOs and executives to discuss his agency’s safety expectations, reports Automotive News. Mark Rosekind, administrator of the National Highway Traffic Safety Administration, said he will meet with General Motors CEO Mary Barra, Ford CEO Mark Fields, and a group of senior executives from Fiat Chrysler, as CEO Sergio Marchionne will be out of the country. Rosekind described the sessions as meet-and-greets with no formal agenda, noting the meetings are his first opportunity to meet face-to-face with the top officials of the Detroit 3 since he was sworn in as the agency’s top official in December. The meetings come after a record-setting year for auto recalls that saw more than 60 million vehicles called back. NHTSA also was embroiled in high-profile clashes with automakers and suppliers over deadly auto defects such as exploding airbags made by Takata and defective ignition switches from GM. Since taking the helm at NHTSA, Rosekind has said he wants automakers to adopt a more “proactive” safety culture and is pushing companies to ensure that all recalled vehicles get fixed, compared with around 75 percent today. For more on NHTSA administrator Mark Rosekind’s meetings with auto industry officials today, click here.
Senate Approves Auto Industry Whistle-Blower Bill
According to The Detroit News, the U.S. Senate approved the first piece of auto safety legislation, a bill to incentivize auto industry whistle-blowers. The fate of the measure in the House is not known and other sweeping proposals to reform auto safety laws haven’t yet had a hearing. The legislation—first proposed in November—allows auto industry employee whistle-blowers to be paid millions if they reveal hidden dangers. Senate Commerce chairman John Thune (R-S.D.) and the panel’s top Democrat, Bill Nelson of Florida, praised the Senate’s unanimous passage of the Motor Vehicle Safety Whistleblower Act. The bill would grant the U.S. transportation secretary discretion to award up to 30 percent of the total monetary penalties resulting from Department of Transportation or Justice Department enforcement actions that total more than $1 million. The bill covers employees or contractors of motor vehicle manufacturers, parts suppliers, and dealerships. The bill goes to the House, where Rep. Fred Upton, R-St. Joseph, chairman of the Energy and Commerce Committee, has repeatedly said he hasn’t yet focused on auto safety legislation this year. For the latest on auto industry whistle-blower legislation making its way through Congress, click here.
Volkswagen Profit Jumps 17% on European Recovery
CNBC reports that Volkswagen increased operating profit in the first quarter on cost cuts and improving European auto demand, winning some respite after the ouster of Chairman Ferdinand Piech. Operating profit jumped 17 percent to 3.33 billion euros ($3.65 billion), from 2.86 billion a year earlier, VW said on Wednesday, close to the top end of a range in a Reuters poll of analysts, whose forecasts averaged 3.12 billion euros. The German group stuck to its guidance for the 2015 operating margin to come in a range between 5.5 and 6.5 percent after reaching 6.3 percent last year. VW also still expects group revenue to exceed last year's record 202 billion euros by as much as 4 percent on continued growth in deliveries. According to Automotive News, Piech lost the support of key VW power players when he tried to remove Martin Winterkorn as VW Group CEO. Ex-union boss Berthold Huber is interim chairman. He will lead the company’s annual meeting on May 5 in Hanover, but he’s not the likely successor to Piech. For coverage of Volkswagen’s profit report, click here. For more on the departure of Ferdinand Piech, click here.
Best Spring 2015 New Car Deals
Its prime time in the new-car business as a delightful wave of spring weather drags shoppers out of their winter-long hibernation and into dealers’ showrooms in earnest. Sales are still on their upward trend, with small crossover SUVs and large pickup trucks being in particular demand these days. Despite the rising tide, however, Forbes reports that bargain hunters can still find some unbeatable deals. For example, hybrid, plug-in hybrid, and full electric cars, many of which have fallen out of favor with car buyers as national average gas prices continue to hover near the $2.50/gallon mark, are among the best bargains right now. Other “green” car deals available to astute shoppers include hefty cash-back deals on the Nissan Leaf electric car and the gas/electric-powered Toyota Prius, Hyundai Sonata Hybrid, and BMW ActiveHybrid 3 models. Forbes has compiled some of the top leasing deals and heftiest sales incentives currently available in the accompanying slideshow. Luxury-car shoppers can find some great deals on select models right now, with Acura giving its dealers as much as an extra $6,250 to cut price on the RLX sedan, and up to $4,000 off the sticker price of the flagship Audi A8 sedan. For more on the best spring 2015 new car deals, click here.
Make Your Voice Heard in DC: Register for AIADA's Summit
There's still time to make your voice heard in Washington, D.C., by joining AIADA on May 11-12 for the 9th Annual International Auto Industry Summit. AIADA has a full program of speakers lined up, starting with our opening dinner, headlined by Robert O'Neill—former Navy SEAL—who will discuss his involvement in several high-profile operations. Dealers will also hear from Erin Kerrigan, managing director of Kerrigan Advisors, on the state of the dealership buy/sell market; congressional speakers; and Washington, D.C., insiders like Politico's chief White House Correspondent, Mike Allen. Gen Y Guy® Jason Dorsey will help dealers understand how to connect with millennial employees and customers. Additionally, AIADA and Global Automakers will unveil the results of this year's Economic Impact Survey, and OEM executives from Hyundai, Toyota, and Subaru will be on hand for the always-popular panel discussion. Take advantage of a special sale price of $400 by registering now. Click here or call 1-800-GO-AIADA.
Around the Web
Jaguar F-Pace Snapped Inside & Out [Autoblog]
10 Best Car Interiors [CNN Money]
Audi Launches On-Demand Car Service [Forbes]
10 '90s Cars That Are Still Totally in Demand [Mainstreet.com]